Yesterday Medical Marijuana, Inc. (PINK:MJNA
, MJNA message board
) came up with a press release announcing their fiscal Q3 revenue and income results. While the official filing is not yet in, the preliminary numbers are there for all to examine.
The report is off to a bit of a disappointing start, with MJNA misleadingly announcing 1500% increase of quarter-over-quarter revenue. Technically, this means an increase from Q2 to Q3, but further down the report explains this is really on a year-over-year basis, comparing against Q3 of 2011.
Here's a quick rundown of numbers posted:
- gross revenue $3 million, up 20% from $2.4 million
- debt tripled from $156 thousand to $585 thousand
- net income shrinking about 20% from $1.47 million to $1.19 million
The report also contains a long list of accomplishments and milestones reached by the company during the quarter. It seems, however, that those activities chewed through a lot of the company's revenues. The revenue growth of 20% is made less impressive by net income decreasing by 20%.
Still, the company has shown that it is capable of turning profitable and going from net loss to net profits, both over a million. The next quarter will probably show whether the company has grown in a profitable way and will truly be able to keep turning steady, increasing revenue while keeping expenses down.
The results of operations announcement seems to have triggered less than expected price movement. In yesterday's trading MJNA closed 10% up, reaching $0.127 at the bell. Peer marijuana company Hemp, Inc. (PINK:HEMP) closed 20% up at a little under 6 cents.
When trading OTC stocks, investors are advised to keep in mind the high risk involved and to be very thorough with their research and due diligence. The penny stock market is a particularly dangerous field compared to higher-tier markets.